Impact of GST on Non resident taxable person

NON-RESIDENT TAXABLEPERSON IN GST

Introduction
Non-resident taxable person means any person whooccasionally undertakes transactions involving supplyof goods or services or both, whether as principal oragent or in any other capacity, but who has no fixedplace of business or residence in India.
A non-resident taxable person making taxable supplyin India has to compulsorily take registration. Thereis no threshold limit for registration. A non-residenttaxable person cannot exercise the option to pay taxunder composition levy.He has to apply for registrationat least five days prior to commencing his business inIndia using a valid passport (and need not have a PANnumber in India). A business entity incorporated orestablished outside India, has to submit the applicationfor registration along with its tax identification numberor unique number on the basis of which the entityis identified by the Government of that country or itsPermanent Account Number, if available.
A non-resident taxable person has to make an advancedeposit of tax in an amount equivalent to his estimatedtax liability for the period for which the registration issought.

Registration
A non-resident taxable person is not required to apply in normal application for registration being filed by other taxpayers. A simplified form GST REG-09 is required to befilled. A non-resident taxable person has to electronically submit an application, along with a self-attested copyof his valid passport, for registration, duly signed orverified through EVC, in FORM GST REG-09, at leastfive days prior to the commencement of businessat the Common Portal either directly or through aFacilitation Centre notified by the Commissioner.
In case the non-resident taxable person is a businessentity incorporated or established outside India,the application for registration shall be submittedalong with its tax identification number or uniquenumber on the basis of which the entity is identified bythe Government of that country or its PAN, if available.
The application for registration made by a non-residenttaxable person has to be signed by his authorizedsignatory who shall be a person resident in India havinga valid PAN. On successful verification of PAN, mobilenumber and e-mail address the person applying forregistration as a non-resident taxable person will begiven a temporary reference number by the CommonPortal for making the mandatory advance deposit of taxfor an amount equivalent to the estimated tax liabilityof such person for the period for which the registrationis sought. The registration certificate shall be issued
electronically only after the said deposit appears inhis electronic cash ledger.The amount deposited shallbe credited to the electronic cash ledger of the Nonresidentperson.
The non-resident taxable person can make taxablesupplies only after the issuance of the certificate of
registration. The certificate of registration shall bevalid for the period specified in the application for
registration or ninety days from the effective date ofregistration, whichever is earlier.
In case the non-resident taxable person intends toextend the period of registration indicated in his
application of registration, an application in FORM GSTREG-11 shall be submitted electronically through theCommon Portal, either directly or through FacilitationCentre notified by the Commissioner, before the end ofthe validity of registration granted to him. The validityperiod of ninety days can be extended by a furtherperiod not exceeding ninety days.The extension will beallowed only on payment of the amount of an additionalamount of tax equivalent to the estimated tax liabilityfor the period for which the extension is sought has tobe deposited.
Input Tax Credit
Input tax credit shall not be available in respect of goodsor services or both received by a non-resident taxableperson except on goods imported by him.The taxespaid by a non-resident taxable person shall be availableas credit to the respective recipients.
Returns
The non-resident taxable person shall furnish a returnin FORM GSTR-5 electronically through the CommonPortal, either directly or through a Facilitation Centrenotified by the Commissioner, including therein thedetails of outward supplies and inward supplies andshall pay the tax, interest, penalty, fees or any otheramount payable under the Act or these rules withintwenty days after the end of a calendar month or withinseven days after the last day of the validity period ofregistration, whichever is earlier.
Refund
The amount of advance tax deposited by a non-residenttaxable person under, will be refunded only after
the person has furnished all the returns required inrespect of the entire period for which the certificate
of registration granted to him had remained in force.Refund can be applied in the serial no. 13 of the FORMGSTR -5.

To download the official concept note issued by CBEC on the applicability of GST on non-resident tax payers – CLICK HERE.